Magellan, Alexandre and Clausewitz - The agile international development model

Our Convergence Letters are published every two months and typically focus on issues regarding telecoms, media and utilities and they address topics such as sustainable development and distribution.

International development is the number one growth relay for companies. For 90% of them, it is even one of the top three strategic priorities.

The traditional models (import/export-type trade, starting from scratch by setting up subsidiaries in a target country, investment in infrastructure) naturally continue to exist. However, the agile model is becoming increasingly important.

This is illustrated by three major approaches:

The explorer, this approach consists of analyzing its know-how, tangible (technology, logistics platform, proprietary business tools, etc.) and intangible assets (brand, international contact base, experience, R&D), and leveraging them to build a potential new offering portfolio.

The conqueror, this approach enables the testing of various strategies, rapid chessboard moves and even, in the event of failure, a less-costly exit from a country.

The strategist, the idea is to be one step ahead to be able to exit a country rapidly or adapt the business model/legal vehicle (subsidiary, joint venture, representative office, etc.) if necessary.

The agile development model is a real opportunity for companies to reinforce their international operations while containing risk. In this approach, have “tried and failed” than “never to have tried at all”!